Wednesday
May 6, 2009

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Boscola files class action complaint against PUC over PPL rates

HARRISBURG – State Senator Lisa Boscola said that she will be filing a class-action formal complaint against the Pennsylvania Public Utility Commission (PUC) on behalf of 1.4 million electric customers in PPL service territory.

Ironically, her complaint against the PUC must be filed with the PUC.  Whether the state's five Commissioners will be forced to recuse themselves to avoid a conflict of interest will be known shortly.

According to Boscola, the PUC ignored its own order by refusing to release data about PPL's projected rate increase when it issued yesterday's official "PUC Electric Price Estimates Update."  That update included complete data regarding the other 4 companies across the state that will soon have electric rate caps expire.

"Our PUC deliberately left 1.4 million electric customers in the dark about next year's rate increase," Boscola said.  "Aren't they supposed to be working for the public?"

Anonymous sources throughout the PUC have told Boscola the following:

  1. PPL's expected rate increase when caps expire will be much higher than the company wants to admit;
  2. By "informal vote," at least 3 of the 5 Commissioners decided not to release data about PPL in the report because "it would be confusing to customers";
  3. Some of the Commissioners and most regulatory staff were "not even allowed to see PPL's numbers";
  4. Buried in small print at the bottom of the last page of the PUC's report, it states: "According to the company, residential customers would see a 30.4 percent increase when rate caps expire.."
  5. That is about 50% higher than PPL's previous percentage increase for residential customers, which was released last quarter;
  6. Unlike all previous PUC Electric Price Estimates, the PUC decided not to release any data to commercial or industrial customers that are served by PPL;
  7. All other companies included in yesterday's PUC flashcut reported current, historical and averaged data to allow customers to choose lower rates under deregulation.

"Small businesses and larger companies are worried about losing jobs or going out of business when rate caps expire," Boscola said.  "Every school district and hospital in the Lehigh Valley is desperately trying to figure out how to budget for next year's rate increase and they need to know these numbers because they are considered commercial customers, too."

 


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